Question: A started with an investment of Rs. 28000. After 2 months, B joins with Rs. 20000 and after another two months C joins with Rs. 18000. At the end of 10th month from start of the business, if B withdraws Rs. 2000 and C withdraws Rs. 2000 what is the respective ratio in which profit should be distributed among A, B and C at the end of the year?
Options:
A) 12: 7: 5
B) 12: 9: 5
C) 12: 6: 3
D) 14: 7: 5
E) 11: 9: 7
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Answer:
Correct Answer: A
Solution:
- Total investment by $ A=28000\times 12 $
Total investment by $ B=20000\times 8+18000\times 2 $
$ =160000+36000 $
$ =196000 $
Total investment by $ C=18000\times 6+16000\times 2 $
$ =108000+32000=140000 $
Respective ratio $ =A:B:C $
$ =336000:196000:140000 $
$ =336:196:140 $
$ =84:49:35=12:7:5. $
And distribution of profit among partners is same as their investment.
$ \therefore $ Profit should be distributed in $ 12:7:5. $